Post-sale service is now a revenue source rather than merely the cost of doing business, according to a new study by Aberdeen. The report, "Strategic Service Management: Moving Beyond The Tactics," shows that forward-thinking companies actively leverage this service to drive revenue, profit and customer retention.
This new approach, referred to as Strategic Service Management, depends on effective collaboration across functions, enterprise-wide decision support and an underlying integrated technology infrastructure to support the business processes.
The report found that Best-in-class companies derive 75% higher revenue and 111% higher profits from their service operations than other companies. These companies are also three times as likely to report customer retention rate greater than 90% twice as likely and also to achieve SLA compliance rate greater than 90% than other companies.
Aberdeen research revealed that companies that have deployed best-in-breed service-specific point solutions have on average realized higher performance gains than those that implemented service modules of ERP and CRM solution providers.
Percent of Total Revenue derived from Service:
- ERP/CRM: 16.4%
- Best of Breed: 24.4%
Percent of Total Profits derived from Service:
- ERP/CRM: 22.0%
- Best of Breed: 29.9%
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